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Bets on Big Tech were in Wall Street parlance, crowded last year
. The belief that stocks of the world's technological giants – Alibaba, Alfabet, Amazon, Apple, Baidu, Facebook, Netflix and Tencent – will continue to rise, became universally popular among some of the biggest names in the investment. quarterly sentiment reversed, and the same investors dumped their shares.
Even Berkshire Hathaway, who has spent the last three years, popped up his shares in the company.
And Apple wasn't the only tech titan that big investors sold last quarter.
Jana, along with Third Point, sold all his shares in Alibaba, the Chinese e-commerce giant. The third point left its position in Netflix. Leon Cooperman's company, Omega Advisors, sold its shareholding in Facebook and reduced its holdings in Alphabet. And Tiger Global Management reduced its holdings in Amazon.
Submissions are the latest proof of how quickly investors were buzzing on Big Tech late last year when the industry's woes mounted themselves. A flood of revelations about privacy lapses, and security issues have raised the spectrum of increased regulation on both sides of the Atlantic. However, of more immediate concern for investors late last year, whether these companies could continue to grow among a weakening global economy and a growing trade war between China and the United States.
Over the past three months last year, tech stocks drove 13 percent to 30 percent, erasing more than $ 1 trillion in market value. By comparison, S & P 500 fell 14 percent.
The seller signaled a rapid change in mood among large hedge funds. Many of these fund managers had struggled to beat the wider market in recent years. As technological stocks increased and drove much of the wide market gains, hedge funds blocked their portfolios with their stocks.
The seller took away the target fund industry away from guard and their losses mounted in the fourth quarter storm on the stock market.
So far this year, the shares of the technical companies have recovered, but most have not gone as well as the S & P 500.
The result for the last three months of 2018 was better than investors feared, but they did not inspire confidence that Big Tech will be a global economic downturn well, especially in China.
If investors want back to tech stocks, it will probably depend on the outcome of the trade negotiations between China and the United States. Until then, many investors may remain on the sidelines.